Rama Petrochemicals Ltd Management Discussions

1. INDUSTRY STRUCTURE AND DEVELOPMENTS

The Company is engaged in trading activities and there is good scope for increasing the Trading turnover in the coming years.

2. OPPORTUNITIES AND THREATS

There are increasing opportunities for expansion in trading activities. However the possibility of prolonged recession in the near future could be a threat to the operations of the Company.

3. SEGMENTWISE PERFORMANCE

The segment wise reporting as required in IND AS - 108 is not applicable as the Company has only one segment.

4. OUTLOOK

Future of trading activities is promising and the Company hopes to increase the trading activities in the coming years.

5. RISKS AND CONCERNS

Volatility in prices of industrial chemicals and increasing competition are the major risks and concerns likely to effect the operations of the Company.

6. INTERNAL CONTROL SYSTEMS

The Company has an adequate system of internal controls that ensures that all assets are protected against loss from unauthorized use or disposition and all transactions are recorded and reported in conformity with generally accepted accounting principles.

7. FINANCIAL PERFORMANCE

The loss for the year after extra-ordinary item is Rs 39.44 lakhs as compared to a loss of Rs 131.79 lakhs in the previous year.

8. SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS

9. HUMAN RESOURCES AND INDUSTRIAL RELATIONS

The Human Resources and Industrial relations remained cordial during the year under review.

10. CAUTIONARY STATEMENT

Statements in this Report on Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions are based on certain assumptions and expectations of future events. Actual results could differ materially from those expressed or implied. The Company assumes no responsibility to amend, modify or revise any of the statements on the basis of subsequent developments, information or events.

For and on behalf of the Board